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Exploring the sources of earnings transmission in Spain

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  • Cervini-Plá, María

Abstract

This paper explores the mechanisms behind the intergenerational earnings mobility in Spain by means of three exercises: calculating the transition matrix, decomposing the sources of earnings elasticity and estimating quantile earnings regressions. By calculating the transition matrices we find a strong degree of persistence in educational attainment and especially in occupation. By decomposing the sources of earnings elasticity across generations, we find that the correlation between children's and their fathers' occupations is the most important component. Finally, quantile regressions estimates show that the influence of the father's earnings is greater when we move to the lower tail of the offspring's earnings distribution, especially in the case of daughters' earnings.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36093.

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Date of creation: 20 Jan 2012
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Handle: RePEc:pra:mprapa:36093

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Keywords: Intergenerational mobility; earnings; transition matrix; quantile regression; two sample two stage least square estimator; Spain;

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  1. Cervini-Plá, María, 2011. "Intergenerational earnings and income mobility in Spain," MPRA Paper 34942, University Library of Munich, Germany.
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  24. Robert Erikson & John H. Goldthorpe, 2002. "Intergenerational Inequality: A Sociological Perspective," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 31-44, Summer.
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